A bond with a short period remaining until maturity date. Bonds with less than two years to maturity are often referred to as short bonds. However, defining the exact term of a short bond is quite subjective. Sometimes, a bond with a maturity of less than five years is referred to as a short bond. In this specific meaning, a short bond is also known as a short coupon.

In a different context, short bond may refer to a bond that is sold short (i.e., through short selling). Selling a bond short indicates that the seller borrows the bond and doesn’t own it. In the end, the seller would have to buy the same bond from the market and return it to the lender.